This week, Bitcoin exceeded the expectations of many cryptanalysts and once again confirmed the status of a viable and profitable asset. The news that the Fed is going to introduce new stimulus packages has finally “warmed up” the bulls. As a result, the price of Bitcoin rose in just a few hours from $7,700 to $8,750. But the rally did not stop there: on April 31, the price of Bitcoin rose to a local peak of $9,400.
Thus, Bitcoin was able to reach a seven-week high and grow by more than 120% after the collapse in March. Since the beginning of 2020, Bitcoin has increase by 23%, while traditional assets cannot yet boast the same high results.
How did the distribution of COVID-19 affect Bitcoin?
The announcement that the world faced a terrible pandemic challenge immediately triggered a panic in the stock market. Investors began to actively dump their assets. “Black Thursday”, March 12 has already gone down in history as the day of the crushing Bitcoin collapse.
Despite the predominance of skepticism within the crypto community, the flagship cryptocurrency was able to regain its position. In April, Bitcoin was able to gain a foothold in the trading range from $6,800 to $7,300. Bearish sentiment, single price pullbacks could not affect the BTC rate.
Gold and stocks behind
April also became the month of active criticism of Bitcoin by former crypto adherents and “advocates” of traditional markets. They actively promoted the belief that Bitcoin could not prove its digital gold status and become a reliable hedge asset amid a stock crisis. The subsequent growth of Bitcoin was largely influenced by the Fed’s policy and the printing of a multi-million dollar sum to support the US economy.
Thanks to a breakthrough this week, Bitcoin’s 23% return was recorded. The flagship cryptocurrency looks confident against the backdrop of the achievements of traditional markets: stock market losses since the beginning of 2020 are still 8%; Gold increase was only 12%. In these conditions, Bitcoin acquired the status of the most effective asset in 2020.
Halving, excitement, and forecasts: what will happen next?
The crypto community is now in deep expectation because on March 12 Bitcoin halving will take place. The event, as a result of which Bitcoin mining will be halved, has already provoked the appearance of many ambitious statements and forecasts.
In particular, the crypto analyst PlanB believes that after halving, the price of BTC will rise to $288 thousand by December 2024. The experience of the previous half-division has already shown that the flagship cryptocurrency can jump high in price.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.